• The average price of a new vehicle in the U.S. now exceeds $50,000 USD.
As the U.S. administrations auto tariffs sink in, it’s widely – nay, universally - expected that new-vehicle pricing will climb. Predictions range from $3,000 to $20,000 USD per vehicle, depending on the model, and an average increase of $6,000 USD the consensus opinion.
Some automakers have started to make price adjustments, and now we see that the average price of a new vehicle in the U.S. has climbed above $50,000 USD. It should be noted that the current average price, estimated at $50,025, is close to the high mark of December 7th last year, where it stood at $50,030, so the bump is just a minor one for now.
The market had seen a decline after that December peak, but since tariffs came into effect, new-vehicle prices have started to rise again. And according to data analysis firm Cloud Theory, they will continue to climb.
Cloud Theory tracked the advertised prices of millions of new vehicles on a daily basis, using serial numbers, at franchised dealerships across the U.S., partly to determine the impact that the American auto tariffs were having on vehicle prices.
According to Rick Wainschel, VP of Data Science and Analytics at Cloud Theory, the price increase is being caused by that automakers and dealers pulling back on incentives and rebates, something they have done since Donald Trump first threatened tariffs on imported cars and components.
The average price of a new vehicle reached its highest-ever peak on July 7, 2023, when it hit $51,824 USD. According to Cloud Theory, the highest level reached in the last 12 months was $50,590 USD on June 6, 2024.
In Canada, the average new-vehicle price is fluctuating around $67,000 CAD, a startling figure. Even more startling is the realization that if tariffs stay in place, that may soon be seen as a low-water mark.
